Rebuilding the Economy

The real after-tax rate of return on the 30 year Treasury is now negative, assuming a 30% MTR. That means the tax rate on capital now exceeds 100% in real terms over the next thirty years, which doesn’t seem particularly conducive to capital formation.

After watching the market fluctuations today, I don’t think there’s really any point in discussing the financial markets, as they are clearly retarded. There is NO rational justification for what happened today. (Note that even market manipulation by some parties, e.g. HFTers, doesn’t make what happened any more intelligent – it just means that most traders dance on the strings of puppet-masters.)